As tax season approaches, it's time to start thinking about filing your tax return. But, have you ever wondered why it's essential to file taxes every year? Filing taxes isn't just about staying on the right side of the law - it's also crucial for your financial health. Here's why:

1. Avoid Penalties: Failure to file your taxes on time can result in penalties and interest charges. By filing your taxes on time, you can avoid unnecessary fees and save yourself money.

2. Claim Tax Refunds: Filing your taxes allows you to claim any tax refunds owed to you by the government. This money can be used to pay off debt, save for a rainy day, or invest in your future.

3. Build Credit: Filing your taxes can also help you build credit. If you're self-employed, filing your taxes can show lenders that you have a steady income and are a responsible borrower.

4. Plan for Retirement: Filing your taxes can also help you plan for your retirement. By contributing to a retirement account, you can reduce your taxable income and save money for your future.